Kinder Morgan Louisiana Pipeline LLC
Original Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-257-000, Status: Effective
Original Sheet No. 166 Original Sheet No. 166
GENERAL TERMS AND CONDITIONS
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or letter of credit within twenty (20) days of written notice by
KMLP. Shipper or Anchor Shipper and KMLP agree that, notwithstanding
anything to the contrary in this Tariff, Shipper or Anchor Shipper
shall not be required to provide KMLP any form of credit support
other than the parent company guarantee or the letter of credit or
other substitute credit support mutually agreed. The credit
appraisal pursuant to the first sentence of this subsection (3)
shall be based upon KMLP's evaluation of the following information
and credit criteria:
(i) S&P and Moody's opinions, watch alerts,
and rating actions and reports, rating, opinions and other actions
by Dun and Bradstreet and other credit reporting agencies will be
considered in determining creditworthiness.
(ii) Consistent financial statement analysis
will be applied by KMLP to determine the acceptability of Shipper's
current and future financial strength. Shipper's balance sheets,
income statements, cash flow statements and auditor's notes will be
analyzed along with key ratios and trends regarding liquidity, asset
management, debt management, debt coverage, capital structure,
operational efficiency and profitability.
(iii) Results of bank and trade reference
checks and credit reports must demonstrate that a Shipper is paying
its obligations in a timely manner.
(iv) Shipper must not be operating under any
chapter of the bankruptcy laws and must not be subject to
liquidation or debt reduction procedures under state laws and there
must not be pending any petition for involuntary bankruptcy. An
exception may be made for a Shipper who is a debtor in possession
operating under Chapter XI of the Federal Bankruptcy Act if KMLP is
assured that the service billing will be paid promptly as a cost of
administration under the federal court's jurisdiction, based on a
court order in effect, and if the Shipper is continuing and
continues in the future actually to make payment.
(v) Whether Shipper is subject to any
lawsuits or judgments outstanding which could materially impact its
ability to remain solvent.